Agreement for Sale: Key Clauses to Read Before You Sign

⚡ Quick Answer

The agreement for sale sets out your rights and the developer's promises. Before you sign, read the clauses on carpet area, price and payment schedule, possession date, specifications and amenities, defect liability and cancellation. If anything is unclear, ask - and consider a lawyer's review.

Match every number with what you were told and what is on MahaRERA.
Check what happens if either side is late or cancels.
Keep a signed, registered copy safely.

When you book a flat, you sign many papers – an application form, perhaps an expression of interest, then an allotment letter. But the document that really matters is the agreement for sale. In Maharashtra, it is registered and stamp duty is paid on it, and it governs the whole relationship between you and the developer until possession and beyond.

Agreements can be long and full of legal language, so many buyers simply sign where they are told. This guide explains, in plain English, the key clauses to read and the questions to ask. It is general information, not legal advice – for a large purchase, a review by your own lawyer is worth it.

Table of Contents

Where the Agreement Fits in the Buying Process
Clause 1: Property Details and Carpet Area
Clause 2: Price and Payment Schedule
Clause 3: Possession Date and Delays
Clause 4: Specifications and Amenities
Clause 5: Defect Liability, Cancellation and Transfer
Before You Sign: A Short Checklist
Related Guides
Frequently Asked Questions
Conclusion: Read Carefully, Sign Confidently

Where the Agreement Fits in the Buying Process

Booking and application. You choose the flat and pay a booking amount.
Allotment letter. The developer confirms the flat allotted to you.
Agreement for sale. The detailed contract is signed, stamp duty is paid and it is registered.
Construction-linked payments. You pay instalments as per the agreed schedule.
Possession and conveyance. You receive the flat, and later the society or association is formed.

Our guide to the flat booking process covers each step, and documents to buy and register a flat lists the paperwork.

Clause 1: Property Details and Carpet Area

The agreement should clearly describe what you are buying:

Flat number, floor and towerCheck these match your allotment letter.
Carpet areaUnder RERA, the price is based on carpet area. It should be stated clearly in square metres and/or square feet.
Balcony or deck areasThese are often listed separately from carpet area.
ParkingThe type and number of parking spaces allotted, if any.
Floor planA plan of your flat is usually attached - check it matches what you saw.

Unsure about area terms? Read carpet area vs built-up vs super built-up. For parking, see car parking in Mumbai apartments.

Clause 2: Price and Payment Schedule

This section sets out the total price and when each instalment is due. Look for:

Total consideration – the agreed price, and what it includes.
Other charges – such as GST, maintenance deposits, society formation or corpus fund.
Payment schedule – usually linked to construction stages.
Interest on late payment – what you pay if an instalment is delayed.
Escalation – whether the price can change, and on what basis.

Tip: keep every payment receipt and the bank's demand letters in one folder. For extra charges, see maintenance charges and the corpus fund and the true cost of buying a flat.

Clause 3: Possession Date and Delays

The agreement should mention the date by which the developer will hand over possession. Check that it matches the completion date shown on the project’s MahaRERA registration.

RERA gives buyers rights if possession is delayed, such as interest or a refund in certain cases. Read how the agreement describes delays and what it calls “force majeure” (events outside the developer’s control).

For L&T The Gateway Sewri, our article on the possession timeline explains the published date and how to confirm it. To check any project’s registered details, see how to verify a project on MahaRERA.

Clause 4: Specifications and Amenities

The agreement, or a schedule attached to it, usually lists the specifications of the flat and the common amenities. Compare these with the brochure and the sample flat:

Check	Why it matters
Flooring, fittings and fixtures	So you know what finish to expect at handover
Kitchen and bathroom specifications	These are costly to change later
Windows and doors	Affect comfort, safety and noise
Smart and security features	See smart home features for what to ask
Common amenities	Clubhouse, pool, gym, gardens and their timelines

If a feature matters to you, make sure it is written down.

Clause 5: Defect Liability, Cancellation and Transfer

Defect liabilityUnder RERA, the developer is generally responsible for fixing structural defects and certain workmanship issues reported within five years of handing over possession. Check how the agreement describes this.
Cancellation by youWhat deductions apply if you cancel, and how refunds are made.
Cancellation by the developerIn what situations, and what notice you receive.
Transfer or resale before possessionWhether you can transfer the flat, and any charges.
Home loan and mortgageWhether the developer gives the permissions your bank needs.

At handover, use our possession handover checklist to record any defects in writing.

Before You Sign: A Short Checklist

Read the draft in advance. Ask for the draft agreement a few days before signing.
Match the numbers. Flat number, carpet area, price and dates should match all your other papers.
Check names. All buyers should be named correctly - see joint home ownership.
Ask about anything unclear. An authorised channel partner can help you get answers - see questions to ask a channel partner.
Get a lawyer's review. Especially for a large purchase or if you are an NRI.
Register and keep copies. Store the registered agreement, receipts and index copy safely.

The agreement is one part of the legal checks. See the full legal due diligence checklist before buying a flat in Mumbai to review title, approvals and loans on the land as well.

Frequently Asked Questions

Is the agreement for sale the same as the sale deed?

No. The agreement for sale is signed before possession and sets out the terms of the sale. The final transfer of ownership is recorded later through the conveyance documents.

Is the agreement for sale registered in Maharashtra?

Yes, the agreement for sale for a new flat is generally registered, and stamp duty and registration charges are paid on it.

Should carpet area be mentioned in the agreement?

Yes. Under RERA, flats are sold on carpet area, and it should be clearly stated in the agreement.

What is the defect liability period under RERA?

RERA generally makes the developer responsible for fixing structural defects and certain workmanship issues reported within five years of possession. Check your agreement for the exact wording.

Do I need a lawyer to review the agreement?

It is not compulsory, but a lawyer's review is a good idea for such a large purchase, especially if any clause is unclear.

Conclusion: Read Carefully, Sign Confidently

The agreement for sale protects you only if you know what it says. Read the key clauses, match every number and date, ask questions and keep your copies safe. For help with L&T The Gateway Sewri (MahaRERA No. P51900054969), enquire now or call +91 80503 63647.

L&T The Gateway, Sewri

MahaRERA No. P51900054969

Get the project details, floor plans and price sheet for 3, 4 and 4.5 BHK residences in Sewri, Mumbai. Our team will call you back.

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